Why is there increasing competition in the logistics industry

The Chinese logistics industry, marked by the rise of e-commerce, is undergoing rapid changes and innovations, and the road transportation industry is no exception. The overall feeling of the logistics industry is that it is very active and full of hope.

But currently, many logistics personnel are not happy: costs are getting higher and higher, shipping costs are decreasing time and time again, business is becoming more difficult to do, and money is getting less and less. Many people feel that the path of 'money' is very uncertain.

Why is this happening? One of the important reasons is that there are more monks and less Congee, and the homogenization competition of products and services is becoming increasingly fierce. It can be said that many companies have felt the burnt smell of homogeneous competition.

It is said that logistics is a barometer of the economy. The overall situation is good, demand is strong, and the circulation of goods is large. However, the corresponding economic situation is not good, market demand is weak, and the circulation of goods is reduced.

Ten years ago, the domestic demand for goods circulation was strong, logistics development was very rapid, and the industry was expanding rapidly. Road freight transportation entered a period of explosive growth and directly reached its peak. Whether it's logistics information platforms or dedicated lines, with zero burden, logistics enterprises are blooming everywhere.

In logistics enterprises, small and medium-sized enterprises account for the vast majority. According to previous data, there are over 7.5 million logistics companies engaged in road transportation in China, with approximately 1 million logistics companies and an annual growth rate of about 15%, exceeding the total number of zero load enterprises in other countries. There are 30 million truck drivers, while there are only 2.8 million truck drivers in the United States.

Although the logistics industry has multiple fields such as transportation, warehousing, urban distribution, dedicated lines, small cars, and express delivery, the business processes between enterprises are not exactly the same. However, the number of people who cannot be suppressed is large, not to mention the inherent similarity of services. Whether it is business, transportation routes, or target groups, there are serious overlaps between enterprises, with a large number of predators and dozens of people waiting in line for a single business from a company.

In addition, there is competition not only within the same type of transportation, but also in heterogeneous transportation.

In recent years, with the adjustment of transportation structure, the improvement of environmental protection level, the coordinated development of cost reduction and efficiency, there is homogeneous competition between railway transportation services and road transportation. For example, inter provincial transportation of more than 1000 kilometers will be impacted and affected by railway transportation.